Business Groups Push Back on Victoria’s Compulsory Work-From-Home Plan

Business groups warn Victoria’s compulsory work-from-home pledge could add another layer of regulation on already struggling businesses in Australia’s second-most populous state.

CEO of the Committee for Melbourne, Scott Veenker, said working from home should be an issue discussed between employers and employees on an individual basis.

“We know that businesses will move their staff and resources accordingly, and we don’t want Victoria to be seen as a place that’s too hard to do business,” he said in comments obtained by The Epoch Times.

“Working from home is a fact and a reality, and one that works for a number of individuals and businesses, for that matter.

“They should be arrangements that are done in conjunction with staff and the employers, rather than the state government trying to put their noses into this.”

In 2024, more that 350 businesses shut their doors in Victoria every day, according to data from the Australian Bureau of Statistics. Further, the state’s net debt was $133.2 billion at the end of the 2024-25 financial year, and it is predicted to reach $187.3 billion by June 30, 2028.

In early August, the Allan Labor government announced it would legislate a requirement for businesses to allow employees to work two days a week from home where feasible.

“Flexible working arrangements are utilised by workers and businesses alike, with more than a third of Australian workers–including 60 per cent of professionals–regularly working from home,” the Allan government said in a statement.

“It saves families money. It saves Australians on average $110 a week or $5,308 every year. That’s more money back in the pockets of hardworking Victorians at a time when every dollar makes a difference.

“It cuts congestion. Victorians are now spending less time commuting, saving more than three hours in their week on average.”

Allan said the seven-week consultation process would help determine the types and sizes of businesses that would be covered by the new laws.

Victoria is up for election the next year and the government is already facing pressure to hold power given the massive swings against Labor at the most recent by-elections.

Yet the Victorian Chamber of Commerce says it just adds more red tape to local businesses.

“Adding further complexity to running a business and creating jobs in Victoria risks driving business out of this state,” said Antoinette Truda, executive director  of commercial services.

Meanwhile, Matthew Addison, chair of the Council of Small Business Organisations Australia (COSBOA) disputed the Allan government’s statement that working from home was good for the economy.

“Small businesses regularly accommodate these requests where operationally feasible,” he told Accountants Daily.

“While we support workplace flexibility where it makes business sense, mandating a blanket right to work from home two days per week is regulatory overreach that will harm small business competitiveness. This policy should be evaluated based on reliable evidence.”